Quote:
Originally Posted by Knalus
Utilize your TFSA's first? Why? You get a massive return on RRSPs, on your tax return. You then take the return on TFSAs, or if you are in the first 7 years of your mortgage, put it on your house. TFSAs are last in the pecking order, not first. Unless you have serious issues with liquidity.
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It all depends on your tax rates.
If you expect to pay a higher tax rate in retirement than you do currently, a TFSA is better. If you expect to pay a lower tax rate in retirement than you do today then an RRSP is better.
If you expect to pay the same tax rate in retirement as you do today it is a complete wash. Do the math.